Akamai Technologies vs DigitalOcean
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KIRA’s take AI analyst
I put Akamai Technologies and DigitalOcean side by side, using each one’s latest annual report. Here is what stands out:
- Akamai Technologies is the larger business, with $4.2B of revenue in fiscal 2025 against $901M for DigitalOcean, about 4.7 times as much.
- DigitalOcean grew revenue faster (15.5%, against 5.4%).
- DigitalOcean kept more of each dollar of sales as operating profit (17.4% operating margin, against 13.5%).
- Akamai Technologies turned more of its sales into free cash flow (24.0% FCF margin, against 20.0%).
- DigitalOcean earned a higher return on the capital invested in it (15.7%, against 6.3%).
- Investors pay more for each dollar of DigitalOcean’s earnings: a P/E of 43.2x against 35.6x for Akamai Technologies.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Akamai Technologies
AKAM
3/10
FCF marginNet debt / EBITDAShare count change
DigitalOcean
DOCN
7/10
Revenue growth5-year growthGross marginOperating marginNet marginReturn on capitalPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | AKAM FY25 | DOCN FY25 |
|---|---|---|
| Size | ||
| Market cap | $15.1B | $11.8B |
| Revenue | $4.2B | $901M |
| Free cash flow | $1.0B | $181M |
| Net income | $452M | $259M |
| Growth | ||
| Revenue growth | 5.4% | 15.5% |
| 5-year growth | 5.6% | 23.1% |
| Share count change | −4.7% | 11.5% |
| Profitability | ||
| Gross margin | 59.0% | 59.9% |
| Operating margin | 13.5% | 17.4% |
| Net margin | 10.7% | 28.8% |
| FCF margin | 24.0% | 20.0% |
| Return on capital | 6.3% | 15.7% |
| Return on equity | 9.2% | — |
| Balance sheet | ||
| Net debt | $2.9B | $1.2B |
| Net debt / EBITDA | 2.3x | 4.0x |
| Dividends and buybacks | $800M | $82.1M |
| Valuation & quality | ||
| P/E | 35.6x | 43.2x |
| Piotroski F-score | 6 | 7 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.